Annual Report 2024 - Estate Brands

Suzy Smith, MD Estate Brands

The past year has been one of significant challenge but also progress for our Estate Brands.

The global economic downturn coincided with the execution of our premiumisation strategies for Highland Park and The Glenrothes. The decline in consumer spending and trade destocking in the second half of the year have intensified the impact of our planned reduction in volume as we discontinued lower value products that are not aligned with the brands' ultra-premium strategies. We have continued to invest behind both Highland Park and The Glenrothes to ensure they are well placed for growth as the global economy recovers.

Each of our Estate Brands has presented compelling consumer and trade campaigns this year.

Highland Park partnered with the actor Gwendoline Christie to bring a breath of fresh air to Highland Park. The campaign highlights the natural beauty and creativity of Orkney and is recruiting a new generation of consumers to this well-loved brand.

We have taken a further step forward for The Glenrothes with the introduction of new packaging for our 18- and 25-year-old expressions. The Glenrothes captured the attention of luxury spirits consumers with Philos, a remarkable blend of art and engineering designed to protect and serve our 1969 spirit.

Our acquisition of a majority stake in 2023 has allowed us to work more closely with the team at Wyoming Whiskey. This year we have increased investment and integrated the brand into the Edrington business. Our new campaign, Made of Wyoming, highlights the relationship between Wyoming Whiskey and its home state, with its ingredients sourced within 50 miles and every bottle distilled, matured and bottled on-site.

The sustainability of our Estate Brands plays a significant role in Edrington's 2045 Net Zero commitment. Last year we completed work on a heat recovery system that is designed both to reduce emissions and cut energy costs at The Glenrothes distillery. Our 226-year-old Highland Park distillery has entered into an extended silent season to allow for environmental upgrades that will reduce the distillery's carbon emissions by up to 20%. For the remainder of 2024, visitors will be welcomed to Highland Park's store in Kirkwall for a new range of experiences.

Our exceptional Estate Brands are well-positioned for growth in the coming years.